The Garden State is blooming, with fresh and exciting news coming in! New York City and the state are not the only ones not sleeping, and New Jersey has plenty of new things happening – seemingly all at once. Crypto and gambling are a match made in heaven, but both industries are ever-changing, and something new is happening every day.
To keep up with the onslaught of information, here’s some brief highlights of the latest news below.
1. A possible double tax hike
Online casinos are bringing in a hefty tax revenue for the state. In December of 2023, they’ve made over $500 million, and such success does not happen without attracting attention. Senator John McKeon’s proposal would impact the online casino scene in New Jersey as he aims to increase the wage tax rates from 15% to 30%.
This will also affect online sports betting, as they are allowed in New Jersey, where currently there is a 13% tax rate, and it too would go up to 30%. What will happen remains to be seen, but should the bill pass, it will impact the local online casino scene. Until then, local casinos and those listed on offshorepokersites.com continue to operate as usual, where Filip Jovchevski has listed some of the best options for players. Offshore casinos are proving to be extremely popular, thanks to the huge range of gambling games on offer, as well as their round-the-clock customer service.
Indeed, New Jersey may be among the early adopters of online casinos and sports wagering, but they have the lowest taxes in the nation and region. New York has a 51% tax, for comparison, and should New Jersey raise their taxes to 30%, it would still have a competitive edge.
2. Supremeland lands in New Jersey
New Jersey has another feat to brag about as Supremeland Gaming was approved to operate within New Jersey state. This Swedish-American corporation is one of the leading suppliers in slot technology, and to celebrate the approval, Supremeland is launching its first three titles in New Jersey. Supremeland is making steady advances, as it also got permission to operate in West Virginia, Michigan, and Pennsylvania, so far.
The New Jersey Division of Gaming Enforcement awarded the Supremeland Gaming company its market access, following regulations and procedures set, where the company mentioned above is delighted to operate in the regulated U.S. gambling industry. While similar options are not available nationwide, as local state laws differentiate and legal procedures take time, players can, in the meantime, access casinos not on GamStop.
As Supremeland has joined the online casino industry in New Jersey, it could potentially expand even further to other U.S. states. And, as always, changes to gambling and betting, especially the online variant, can always occur in any state in the future.
3. TradeStation Crypto Inc. settled for $1.5 million
As mentioned, the online gambling scene in the U.S. is highly regulated, but that practice does not fall off in its crypto segment. After a prolonged legal battle, New Jersey Attorney General Matthew Platkin announced that a consent order was made with the crypto company, marking a settlement in the case. In August 2021, and for some time after that, more than 140 New Jersey investors were offered a crypto-interest earning program by TradeStation Inc. The company then offered illegal and unregistered assets via its crypto program, leading investors astray.
The company, as it was later determined by the investigators, had complete control over the funds. As such, the settlement was finally set and done on behalf of 51 U.S. state jurisdictions, making crypto asset security equally important as other regular financial assets. These unregistered crypto assets were the main focus of the North American Securities Administrators Association (NASAA) investigation led by a dedicated task force, yielding reassuring results after a long investigation period.
4. New Jersey observes crypto deposits
Sometimes, the tried and tested wait-and-see policy may save anyone from headaches. Recently, Penn National’s Barstool Sportsbook made headlines by becoming the first U.S. operator to offer a payment method option for its customers who are using crypto as payments and deposits, and this deal applies to the states of Virginia and Colorado. On the surface, being able to use Bitcoin, Ethereum, Litecoin, and DASH for deposits, which are first converted to U.S. dollars, of course, sounds great for the online gambling industry, but New Jersey officials are remaining cautiously optimistic.
The volatile nature of the crypto market and its explosively developing nature have not convinced New Jersey officials to make the same moves as Virginia and Colorado have, so far. Such moves are in their infancy, as are many new technologies that are rapidly evolving. With millions on the line, the promise of potential revenue (and tax income by extension) may seem lucrative, but so are the caveats. While New Jersey wages its options and debates about the future, it’s still keeping an eye out for other markets and observing the results of such policies.
5. Coinbase struck by New Jersey Bureau of Securities
Another win for crypto security and regulation in the U.S. occurred in 2024 when the New Jersey Bureau of Security issued a cease and desist order to Coinbase, Inc. for violating Securities Law. Its crypto-stacking offers were deemed unlawful, and the operators were ordered to pay $5 million in damages and reparations. The harsh penalty is issued for the selling of “unregistered securities” as cited by the Bureau.
The operator was selling unregistered assets to local New Jersey residents without first registering them with the proper officials, going ahead and breaching the Securities Law. Coinbase can sell its assets in the future to New Jersey citizens, but it first needs to register them with the Bureau. The reason behind such a harsh fine is that the crypto market needs to remain regulated, and with proper registration, potential investors can receive all the crucial info about crypto assets. Shirley Emehelu, the Executive Assistant Attorney General, later said: “The cryptocurrency securities market is not a free-for-all where companies can make up their own rules.”